Compound Interest
First, there's mathmatics. Obviously, you've got to be able to handle numbers and quantities - basic arithmetic. And the great useful model, after compound interest, is the elementary math of permutations and combinations.
From Charlie Munger's quote, you can see how he ranks in mathematics.
- Basic arithmetic
- Compound Interest
- Permutations and Combinations
Understanding the power of compound interest is essential for investors and anyone living in a capitalist society.